3. Good Luck! 1. In a competitive market‚ the actions of any single buyer or seller will a. have a negligible impact on the market price. b. have little effect on market equilibrium quantity but will affect market equilibrium price. c. affect marginal revenue and average revenue but not price. d. adversely affect the profitability of more than one firm in the market. Table 14-1 Quantity Total Revenue 0 $0 1 $7 2 $14 3 $21 4 $28 2. Refer to Table 14-1. For a firm operating in a competitive
Premium Economics Costs Marginal cost
production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh unit of labor is 4. Given this information‚ what is the total cost of production when the firm hires 7 workers? a. $66 b. $76 c. $906 d. $946 3.) Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition‚ suppose that marginal cost of the third worker hired is $40‚ and the average total cost when
Premium Costs Perfect competition Economics
Chapter 04 Demand 10. The long-run price elasticity of demand for a product is generally _________ the short-run elasticity for the same product. A. lower than B. equal to C. higher than D. not comparable to 11. Assume the demand function for skin care products is given by Q = 1‚000 – 20 P + 5I. If P=$25 and I=$1‚000 currently‚ then: A. skin care products are a normal good. B. the elasticity of demand is equal to 11. C. skin care products are inferior. D. The price is too high
Premium Supply and demand Costs Price elasticity of demand
econonmMicroeconomics Review Quiz Test 2 1. When is marginal utility equal to zero? A. When TU is zero. B. When MU is at its maximum. C. When TU is at its maximum. D. When MU is at its minimum. The following table shows Mia ’s $ marginal utility for litres of soya milk: 2. Refer to the above table to answer this question. Suppose that Mia has a budget of $7 and the price of a litre of soya milk is $1‚ what is the maximum quantity that Mia might purchase? A. 0. B. 4 litres
Premium Costs Variable cost Marginal cost
expansion or contraction plans‚ monitor organizational performance and analyze operational risk as they choose an appropriate cost structure to help in the decision making process to sustain the firm. Table of Contents Introduction 4 Marginal Cost Equations and CVP Analysis 9 Cost Volume Profit (CVP) Relationship in Graphic Form 14 Applications of Cost Volume Profit (CVP) Concepts 17 CVP Analysis Illustrations - Unit in Expansion Mode 19 Illustration 1 19 Illustration
Premium Variable cost Costs Marginal cost
100A Public Goods and Coase theorem April 29-May 2 Part I Public Goods A good is a (pure) public good if once produced it meets two criteria: 1. Non-rival - A good is non-rival if consumption of additional units of the good involves zero social marginal costs of production. 2. Non-excludable - A good is non-excludable if it impossible‚ or very costly‚ to exclude individuals from benefiting from the good. Taking these two criteria we can categorize goods into four groups. Rival Non-rival
Premium Externality Public good Marginal cost
enhance the “competitive advantage” Ryanair had (operational efficiency)‚ because at that moment the airline did not have a good amount of customers; andadditionally it did not realize that its competitors could easily reduce their price to the marginal cost‚ which they were already able to cover. The strategy was not sustainable by any means. Another problem that arise thanks to the poor strategy chosen by the company‚ was that it did not gave the
Premium Aer Lingus Cost British Airways
the importance of engaging in “marginal” activities. He does not like the negative connotation that the word “marginal” has been given. It’s negative connotation comes from the thought that it describes things that have close to‚ or no purpose. All activities start out as having no purpose to them always end up having a deeper meaning to them in the end. Activities such as traveling‚ playing basketball‚ and exploring the woods in “In Praise of Margins” may be marginal‚ but they are important in life
Premium Economics Activity Utility
best completes the statement or answers the question. The first picture below depicts the cost curves for a representative firm in this perfectly competitive industry. Initially‚ there are 100 firms. The second picture depicts market demand. Marginal Cost 10 ATC 8 AVC 6 4 2 200 400 600 800 1000 1200 1400 10 8 6 4 2 Dem and 20000 ____ 40000 60000 80000 100000 120000 140000 1. Suppose that the firm produces 300 units of
Premium Economics Cost Marginal cost
___________. 3. Income tax payments are an example of ____. 4. Economic profit is defined as the difference between revenue and ____. 5. A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____. 6. The standard deviation is appropriate to compare the risk between two investments only if 7. The level of an economic activity should be increased to the point where the ____ is zero 8. The net present value
Premium Supply and demand Marginal cost Microeconomics